Why South Korea Is Struggling To Decide Who Can Issue Stablecoins - Expert Insights

South Korea’s stablecoin rules are stalled as regulators clash over whether banks or fintechs should issue won-backed tokens.

Korea’s crypto bill is stalled over stablecoin issuer rules.

The central bank wants banks to remain in control, often framed as a “51%” threshold.

Regulators and lawmakers fear a bank-only model would limit competition.

Firms are lining up, with Toss planning a won-backed stablecoin once rules are finalized.

South Korea’s next major crypto law is being held up by a seemingly simple question: Who gets to issue a won-backed stablecoin?

The proposed Digital Asset Basic Act has slowed as regulators clash over whether stablecoins should be treated as bank-like money or as a licensed digital-asset product.

At the center is the Bank of Korea’s push for a “banks-first” model, ideally through bank-led consortia with at least 51% bank ownership, arguing that stablecoins could, in their view, spill over into monetary policy, capital flows and financial stability if they scale too quickly.

The Financial Services Commission and lawmakers, meanwhile, are wary that a bank-dominated regime could materially limit competition and slow innovation.

The standoff is now expected to push the bill into 2026.

Source: CoinTelegraph